Ads
keep this website free for you. TaxTips.ca does
not research or endorse any product or service appearing in
ads on this site.
Before making a major financial decision you
should consult a qualified professional.

Alberta 2015 and 2016 Personal Marginal
Income Tax Rates

The Alberta government introduced new tax
brackets and rates effective October 1, 2015. Bill 2, the
legislation enacting the new tax brackets and rates, received Royal Assent on
June 29, 2015. The Alberta 2015 rates in the table below are
prorated,
and will be rates reflected on the 2015 income tax forms. This means that
the higher rates (see 2016 rates) will only affect 25% of the income earned in
2015, no matter when in the year the income was earned. The Alberta tax
bracket thresholds are not indexed for 2016, but will be indexed for 2017 and
later years.

The Federal tax rates for 2016 are as per Bill
C-2 tabled in December 2015. The tax brackets and personal amounts
were increased for 2016 by an indexation factor of 1.013. The indexation
factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency
information.

The 2016 marginal tax rate for non-eligible dividends reflects the rate that is
in effect as per Alberta's October 2015 Bill 4.

Alberta (AB)
Personal Income Tax Brackets and Tax Rates

2016
Taxable Income

2016
Tax Rates

2015
Taxable Income

2015
Tax Rates

first $125,000

10%

first $125,000

10.00%

over $125,000 up to
$150,000

12%

over $125,000 up to
$150,000

10.50%

over $150,000 up to
$200,000

13%

over $150,000 up to
$200,000

10.75%

over $200,000 up to
$300,000

14%

over $200,000 up to
$300,000

11.00%

over $300,000

15%

over $300,000

11.25%

Combined Federal
& Alberta Tax Brackets and Tax Rates

2016
Taxable Income

2016
Marginal Tax Rates

2015
Taxable Income

2015
Marginal Tax Rates

Other
Income

Capital
Gains

Canadian
Dividends

Other
Income

Capital
Gains

Canadian
Dividends

Eligible

Non-Eligible

Eligible

Non-Eligible

first $45,282

25.0%

12.50%

-0.03%

13.33%

first $44,701

25.00%

12.50%

-0.03%

12.84%

over $45,282 up to
$90,563

30.5%

15.25%

7.56%

19.77%

over $44,701 up to $89,401

32.00%

16.00%

9.63%

21.10%

over $90,563 up to $125,000

36.0%

18.00%

15.15%

26.20%

over $89,401 up to $125,000

36.00%

18.00%

15.15%

25.82%

over $125,000 up to
$140,388

38.0%

19.00%

17.91%

28.54%

over $125,000 up to
$138,586

36.50%

18.25%

15.84%

26.41%

over $140,388 up to $150,000

41.0%

20.50%

22.05%

32.05%

over $138,586 up to $150,000

39.50%

19.75%

19.98%

29.95%

over $150,000 up
to $200,000

42.0%

21.00%

23.43%

33.22%

over $150,000 up
to $200,000

39.75%

19.88%

20.33%

30.25%

over $200,000 up to $300,000

47.0%

23.50%

30.33%

39.07%

over $200,000 up to $300,000

40.00%

20.00%

20.67%

30.54%

over $300,000

48.0%

24.00%

31.71%

40.24%

over $300,000

40.25%

20.13%

21.02%

30.84%

Marginal tax rate for dividends is a % of actual
dividends received (not grossed-up amount).
Marginal tax rate for capital gains is a % of total capital gains
(not taxable capital gains).
Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is
17% in 2016, 18% in 2015.
2016 non-eligible dividend rates reflect the dividend tax credit
rate as per Alberta's October 2015 Bill 4.
For more information see Alberta dividend tax
credits.